The evaluation of Tata Steel's merger with Indian Steel & Wire Products is advantageous

 The evaluation of Tata Steel's merger with Indian Steel & Wire Products is advantageous

The evaluation of Tata Steel's merger with Indian Steel & Wire Products is advantageous

The merger of Tata Steel with its seven subsidiaries was authorized by the board in 2022.

The value of Tata Steel's shares has grown by almost 13.58 percent so far in 2023.

After the steel giant revealed on December 23 that it will call a shareholder meeting to discuss proposals for merger with Indian Steel and Wire Products on January 25, shares of Tata Steel increased by more than 1 percent on December 26. Will arrange.

Tata Steel's shares was up 1.4% from its previous close to Rs 135.45 on the NSE as of 10.30 am.

A plan to combine its seven companies with itself in 2022 was authorized by the Tata Steel board in an effort to increase cost savings, increase efficiency, and create more synergy.

Tata Steel Long Products (TSPL), The Tinplate Company of India, Tata Metallics, TRF, Indian Steel & Wire Products, Angul Energy, as well as Tata Steel Mining & S&T Mining Company are the seven businesses that are merging with Tata Steel.

In keeping with the group level 5S strategy, which stands for simplicity, synergy, scale, sustainability, and speed, the planned merger would reduce the number of entities within the group, simplifying the group holding structure.

Among other things, it is anticipated that this would result in improved use of shared facilities, the exchange of best practices, the removal of redundant and inconsistent compliance requirements, and the simplification of administrative costs.

It is anticipated that the combined entity's business environment would benefit from more agility thanks to the ensuing corporate holding structure.

Tata Steel has trimmed 116 related organizations since 2019 (20 associates and JVs have been dissolved, 24 firms are now in liquidation, and 72 subsidiaries have ceased to exist).

Tata Steel shares have increased by around 13.58 percent thus far in 2023, behind the benchmark Nifty 50, which has returned almost 15% to investors.